Aitlfund is a private fund located on Long Island, New York. It was setup to research and develop trading systems that would achieve above average returns using expert software development techniques and cutting edge technologies. Initially, the focus was on shorter term Swing Trading in which positions are held anywhere from 1 day to a few weeks. This was then followed by focusing on intra-day trading or “day trading” and developing specific software tools to improve the decision making process to facilitate a more effective and successful trading process.
The first trading strategies that were developed were based on concepts that were created in the artificial intelligence research area, namely Neural Networks. Various technical indicators such as moving averages, stochastics, ADX, MACD, and others were combined into models that were created with various configurations of layered Neural Networks. Training was performed so that the Neural Networks could learn the historic patterns of the markets and forecast outcomes based on past inputs and hence predict future outcomes.
This was followed by the development of automated rule based trading strategies involving concepts such as moving average cross overs, and other indicator combinations. Rigorous back-testing is necessary for these types of strategies and software tools for this were developed.
The markets are unpredictable by nature and therefore constant research is an absolute requirement in order to improve returns, reduce risk, and to accommodate the changes in the markets as they occur. A large amount of effort was placed on researching the effects of Volume which is the actual size of the trades that characterizes the trading that takes place at specific prices. Tools were developed to analyze volume in many ways as well as present information in real-time to traders graphically using specially developed applications.
A key trading software tool that is used is based on the Market Profile concepts but has been adapted to incorporate the volume research information. This tool incorporates the new techniques that relate to volume, which can be used to make better trading decisions. Research into trading systems, and continuous software development, are the core values for continued success.